Renewables Obligation: Biofuels
The question
To ask the Secretary of State for Energy Security and Net Zero, what economic analysis his Department has conducted on the potential impact of non-price factors in decisions on whether sub-100MW bioenergy power stations currently supported by Renewable Obligation Certificates will receive transitional support from 2027.
Answered by Michael Shanks
Small scale biomass generators have received many years of subsidy support under the Renewables Obligation scheme. These assets begin to roll off the scheme from 2027. Any assessment of further support must fully take into account value for money (including consumer bill impacts), electricity system and broader considerations – such as environmental impacts, which are a matter for Defra.
Biomass electricity generation is often more expensive than alternatives and reducing energy bills is a priority for this Government.
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